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Ukraine gives Russia 2 weeks to agree to debt restructuring

New front in the show-down between the countries

15 October, 12:47

(ANSA-AP) - MOSCOW - Ukraine on Thursday gave Russia two weeks to accept to write off part of its loans to the country, as other international creditors have agreed to do, opening a new front in the show-down between the countries.

Relations soured after Russia annexed the Crimean peninsula and threw its backing behind separatist rebels in eastern Ukraine. Ukrainian leaders have accused Moscow of sending troops and weapons to the east, a claim the Kremlin has vehemently denied.

Ukraine and its international creditors agreed in August to write off 20 percent of Ukraine's bond holdings, shrinking $19 billion in the country's sovereign debt to $15.5 billion.

Arseny Yatsenyuk said in a statement Thursday that all Ukrainian bondholders on Wednesday agreed on the restructuring deal at a meeting in London but a Russian representative did not show up.

He said he would give Moscow two weeks, until Oct. 29, to agree to likewise trim a $3 billion loan Russia gave Ukraine in 2013. Yatsenyuk threatened to sue Russia if it does not agree, though it's unclear what legal basis Ukraine would have.

(ANSA-AP).

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